Foster Wheeler signed a cooperation agreement with Clariant
and Wison Engineering to build a pilot plant to demonstrate
Foster Wheelers VESTA substitute natural gas
(SNG) technology, the groups said
Thursday.

The pilot plant will be constructed in China and is planned to
go on-stream during 2013.

Under this agreement, Wison Engineering will provide
engineering and construction services, Foster
Wheeler will license the technology, and Clariant will supply
the proprietary developed catalyst.

This exciting technology provides optimized
solutions to secure future clean energy in China,"
said Stefan Heuser, general manager
of Clariant's catalysts business. "We are very pleased to
have Wison Engineering with its outstanding reputation and
impressive recent development to join Clariant and Foster
Wheeler as our strong partner in China.

The plant will be operated by Wison Engineering.

"By leveraging Foster Wheelers global expertise and
technological strength as well as Clariants strong
innovation in catalyst technology, well continue to
build up our capabilities in coal-to-chemical sector and will
be well positioned to seize the favorable market opportunities
in the domestic and overseas markets," said Liu
Haijun, senior vice president of Wison
Engineering.

The cooperation agreement also sets out a framework for
long-term cooperation to deliver and build methanation plants
in China based on VESTA technology.

Foster Wheeler says its VESTA SNG technology
is a novel methanation technology designed to produce SNG from
synthesis gas obtained from gasification of either coal or
petroleum coke. The VESTA technology is based on
once-through operation with no recirculation, avoiding
expensive compressors.

The technology is based on a maximum operating temperature of
550°C, avoiding any metal dusting formation and enabling
relatively simple reactors to be used. The technology can
operate with syngas from any commercial gasification
technology.

The VESTAtechnology is designed to be simple
and safe to operate and to be implemented at a low total
investment cost, according to company officials.

We are extremely pleased to announce this cooperation
agreement with Clariant and Wison Engineering, said
Umberto della Sala, president of Foster Wheeler. Focused
on China, the worlds largest SNG market, this agreement
is an important first step in establishing our ability to
address the global SNG market.

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